How to Notify Customers of Escrow Rate Change

Answered by:

Question:

If we change the escrow rate for our escrow accounts, do we have to send the customers a notification of the rate change like we do when, for example, the rate on an adjustable rate mortgage changes? If so, how long do I have to send it to the customers?

Answer:

Do you mean the interest rate that you pay on the escrow balance? If so, then interest on escrows is a matter of State law and you will need to refer to the appropriate State statute.

First published on BankersOnline.com 7/30/12